Analysis: A turning point in market sentiment is quietly approaching, and the BWTS pattern indicates conditions are in place for a rebound.

BlockBeats News, December 6 – On-chain data analyst Murphy stated that the Behavior-Weighted Trend Signal (BWTS) can be used to identify genuine long-term holder selling pressure and trend-based capitulation behavior. This indicator not only considers whether investors are selling BTC at a loss, but can also be used to measure “forced selling” by holders after a certain period. Historical data shows that whenever BWTS (red line) and BTC price (black line) diverge, it signals the gradual clearing of panic sellers, often leading to a rebound or reversal in the market. After the Luna crash in May 2022, the BWTS, which had already returned to the zero axis, deviated sharply again, breaking the previous divergence pattern. The rebound ultimately failed to become a reversal, and the market further entered a deep bear phase. Currently, the BWTS pattern is similar to before, which can be interpreted as having the conditions for a rebound, or, in other words, as long as the divergence is not broken, the rebound may not be over yet.